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Title: 25% iPhone Tariff Insufficient To Drive US Production Shift, Morgan
Stanley Says

Link: https://apple.slashdot.org/story/25/05/27/127...

President Trump's threat of a 25% tariff on smartphone imports including
iPhones would not provide enough economic incentive for Apple to relocate US-
bound iPhone production to domestic facilities, according to a new Morgan
Stanley note viewed by Slashdot. The tariff threat, announced Friday via
social media, appeared to target Apple's recent shift of iPhone production
from China to India through its contract manufacturing partners. Morgan
Stanley analysts estimate that establishing US iPhone production would
require a minimum of two years and several billion dollars to build multiple
greenfield assembly facilities, with a trained workforce exceeding 100,000
workers during peak seasons. More significantly, the firm calculates that a
US-produced iPhone would cost 35% more than current China or India
production, primarily due to higher labor costs and the need to import 25% of
iPhone components from China under existing 30% tariffs. By contrast, Apple
could offset a 25% import tariff by raising global iPhone prices just 4-6%,
making domestic production economically unviable.

Read more of this story at Slashdot.

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